Employment

The U.S. Bureau of Labor Statistics reported that state and local governments added an estimated 11,000 jobs in December 2025. State and local employment has increased in all but three of the last 40 months and the aggregate level of state and local employment has exceeded its previous February 2020 peak by 673,000 jobs.

The BLS identifies approximately 20.7 million employees of state and local government as of December 2025. Local governments, which include most school districts, account for nearly three-quarters of total state and local employment, with state governments accounting for around one-quarter of the total. Overall, state and local employment accounts for approximately 13 percent of the nation's workforce.

The private sector added an estimated 37,000 jobs in December 2025.

The charts below present the relative changes in state and local government and private sector employment since 2007.

Monthly changes in state and local government
and private sector employment, 2007-2025

Monthly changes in state and local government employment, 2007-2025

Compiled by NASRA based on data provided by the U.S. Bureau of Labor Statistics. Data is sourced from the BLS Current Employment Statistics program, which is a monthly survey of households, businesses, and governments measuring employment, hours, and earnings estimates. The CES survey reference period is the pay period that includes the 12th day of the month. Data are published on a preliminary basis and revised twice before being finalized. 

See more: https://www.bls.gov/ces/


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What's New at NASRA: Updated Cost of Living Issue Brief

Cost-of-Living Adjustments (COLAs) play a significant role in public pensions. They help retirees keep up with rising prices, but they also add costs to pension plans. Policymakers and plan sponsors are tasked with balancing three things: benefits adequacy, plan sustainability, and affordability for members and plan sponsors.
The recent increase in inflation caused many policymakers and, in some cases pension trustees, to review how benefits are designed and paid for, including the way COLAs are granted and funded. NASRA’s recently updated issue brief on the lates trends in COLAs is available in the NASRA Research Center.